It is a huge difference, but not entirely correct. There are a few states which will allow distance learning graduates to take the state bar, though they may have practice requirements before allowing them to do so. This has been discussed ad nauseam on here - do a search.

5 years practice and motion in to the DC bar but no one seems to understand that here. Iowa has a similar motion in with a few twists. Even if it is theoretically possible to take a bar in a few other states, they will make it difficult for you to qualify. Online grads are not welcome except in California and DC.

Jonlevy is right. The thing to understand is that individual state bars are not required to admit anyone. They can put all sorts of restrictions in place, and it's absolutely fine. The total number of jurisdictions that will clearly admit an online student is two: California and DC. Other jurisdictions may admit an online grad on special motion or petition, but this is not guaranteed. In those states you essentially have permission to apply, that is all. They can still turn you down.

Personally, I'd like to see all state bars follow CA's lead and open the doors to people who have chosen a path different from the ABA scheme. But pointing to a few anecdotal examples of online grads who have been admitted in various states misses the point: most state bars will actively work to keep you out.

But having said all that with an online degree you can also be admitted to numerous federal courts (but only a minority of US District courts due to local bar membership requirements) and England, Ireland, and with the right connections some of the British overseas territories. vast majority of online grads, my estimate is 90% hold only the california license but may reside elsewhere. I've been out of California for 15 years but still keep my license current there.